Remo levels up but many homeowners still at risk if rates rise
While remortgage levels in January bucked the trend, nearly two-thirds of homeowners are not prepared for any kind of interest rate rise.
According to figures, monthly gross remortgage lending rose by 12 per cent in January against the previous month and by 33 per cent against activity in January 2013.
But while many homeowners seemingly made it their new years’ resolution to get their finances in order, the overall majority has not and remains at significant risk if and when rates rise; the latest Legal & General Mortgage Mood survey revealing 65 per cent of homeowners are not financially prepared for an interest rate rise in the next two years.
As speculation surrounding the Bank of England base rate continues to grow, lenders are already gearing up for such an event. As a result homeowners could miss out on securing a low interest rate and leave themselves financially vulnerable.
The survey revealed homeowners in East Anglia are most likely to remortgage in the next 12 months (14 per cent) whilst only 3 per cent of East Midlanders are considering it.
Of those who are open to the idea, the primary driving force is to reduce their monthly outgoings (18 per cent). Other reasons included financing home improvements (9 per cent) and consolidating (7 per cent).
Lynne McCaffrey, Head of Property, comments:
“There has been continued speculation about an increase to the bank of England base rate for some time now. Some homeowners have clearly taken heed and locked in a new fixed fee sooner rather than later but others remain reluctant.
“The main obstacles are the misconception that remortgaging is time consuming and costly. If this is the case why don't download our free remortgage guide or check our remortgage journey infographic.
Content correct at time of publication